How have streaming platforms changed the way people consume entertainment and what roles Data science and Word-of-mouth play in making them successful? An analysis of the Streaming Video-on-demand sector through the market leader Netflix

Streaming platforms have revolutionized the way to consume entertainment giving to the customer freedom in where, when and how to watch and also changing his watching habits, introducing the concept of Binge-watching. This prolonged viewing experience has effects on how we engage with fictional stories. It is not anymore sufficient to sole watch; the majority of the audience extends their experience on social networks, engaging in discussions, commenting and linking related content for several and different reasons: to be part of a community, to have fun or either to be useful in suggesting others. Therefore, companies can exploit this behavior in two significative ways. They can collect data regarding their customers to create better products and more personalized experiences and, at the same time, they can leverage on the Word-of-mouth phenomenon to increase visibility and awareness about their service, their products and create long term customer relationships. Considered as experience good, entertainment is affected by word-of-mouth: social ties, reviews and social network discussions have an impact on customer’s content perception and also in his decision-making process to what to watch. It is companies’ job and more specific marketing job, to be able to arouse customers’ interest but above create customer engagement through a continuous interaction since it is proved that engaged customers are loyal customers. This type of industry is currently booming and sees more and more players competing to attract customers and increase their subscriber base. An analysis of the Streaming Video-on-Demand industry is provided to the reader by observing closely to the leading company Netflix and its strengths and weaknesses.